Calculating Gross Margin for Enterprise SaaS Businesses
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One of the thorniest issues in Enterprise SaaS accounting is not what you would expect. Accountants will always respond that establishing revenue recognition in accordance with ASC-606 is the most difficult process to implement. In my experience, producing a policy for gross margin accounting is much more challenging because there…Read More

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Alternatives to Bankruptcy for Companies Facing Insolvency During COVID-19
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The current Covid-19 crisis has tested the financial solvency of many companies.   Chapter 11 bankruptcy may be the last resort (or next to last resort) for an orderly reorganization of a company’s debt before an outright liquidation in Chapter 7.  Both kinds of filings are expensive and procedure-bound. Bankruptcy attorneys,…Read More

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Understanding Unit Economics for the Enterprise SaaS “Go-To-Market” Strategy
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Executive Summary The direct field-sales “go-to-market” strategy dominates in Enterprise SaaS companies serving large corporations with high value-add products requiring extensive integrations and high-touch customer service. This article discusses the unit economics of the direct field sales model and shows how it leads us to the LTV/CAC ratio. Enterprise SaaS…Read More

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SaaS Glossary: Metrics, Benchmarks and Ratios Used in SaaS Business Performance Review
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FLG Partners has consulted with many SaaS businesses – from startups to enterprise-level. Our deep CFO consulting and board advisory expertise is used to improve operational and financial performance of these SaaS entities leveraging key industry metrics and benchmarks including (but not limited to): Financial Metrics Annual Contract Value (ACV)…Read More

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